Enea AB · OMXSTO:ENEA

Enea AB — Q1 2021 Earnings Presentation

16 slides from Enea AB's earnings presentation, Apr 27, 2021

  1. Slide 1: Q1 2021 Financial Results

    Q1 2021 Financial Results Jan Häglund, President and CEO Björn Westberg, CFO April 27, 2021

  2. Slide 2: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 2

  3. Slide 3: Summary of Q1 2021

    Summary of Q1 2021 Jan-Mar 2021 Jan-Dec 2020 OPERATING NET DEBT TO OPERATING HEAD NET SALES NET SALES MARGIN EBITDA MARGIN 1/ QUARTER KISTA, SWEDEN 214 20.9 0.62 915 24.2 SEK m SEK m PERCENT PERCENT EARNINGS PER OPERATING EARNINGS PER OPERATING LISTED R&D 1/ SHARE CASH FLOW SHARE CASH FLOW NASDAQ ST

  4. Slide 4: Key Events for Enea During the First Quarter

    Key Events for Enea During the First Quarter Enea Launches 5G MicroCore to Support Private Enterprise Private 5G Networks for Industry 4.0 NEXCOM and Enea launch open-source software kit for Enterprise Networking secure SD-WAN leveraging flexiWAN Enea Edge extends uCPE virtualization to additional s

  5. Slide 5: Enea Launches 5G MicroCore to Support Private Enterprise Networks for Industry 4.0

    Enea Launches 5G MicroCore to Support Private Enterprise Networks for Industry 4.0  Enea 5G MicroCore benefits: multi-vendor (no lock-in), telco-grade reliability and security for data storage, easy deployment, seamless integration across private and public clouds such as Amazon Web Services and Mi

  6. Slide 6: Aptilo IoT CCS Part of Innovative Global IoT Service

    Aptilo IoT CCS Part of Innovative Global IoT Service  Aptilo IoT Connectivity Control Service™ (IoT CCS) is part of a global IoT Service, where it adds a flexible layer of policy control and security features  Aptilo IoT CCS is one of the important components in the newly launched Telia Global IoT

  7. Slide 7: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 7

  8. Slide 8: Net sales increased by 4% (currency adjusted)

    Net sales increased by 4% (currency adjusted) Net Sales per quarter (SEK m) 2021 2020 300 Q1 Q1 Net sales (SEK m)1/ 214 222 250 Growth (%) -3 -8 200 Growth (%, currency adjusted) 4 -10 1/ LY does not include the Aptilo business, which was acquired 1 October 2020 150 100 50 0 Q1 1/20 2/20 3/20 4/20 1

  9. Slide 9: Network Solutions represent 68% of Total Net sales

    Network Solutions represent 68% of Total Net sales Net Sales per Product group (MSEK) 250  Network Solutions Net sales increased by 12% in fixed 200 currencies, mainly driven by the 54% acquired Aptilo business generating 8% 61% 68% and organic growth of 4%. 150 68% 100 31%  Operating System Solut

  10. Slide 10: 21 percent EBIT margin in Q1

    21 percent EBIT margin in Q1 Operating profit excluding NRI (SEK m) 2021 2020 Q1 Q1 80 EBIT excl. non-recurring items, SEK m 44.7 40.5 EBIT, SEK m 44.7 22.6 60 EBIT margin excl. non-rec. items, % 20.9 18.3 EBIT margin, % 20.9 10.2 40 Earnings per share, SEK 2.02 0.80 20 Q1 0  20.9% EBIT margin excl

  11. Slide 11: EBIT analysis

    EBIT analysis 2021 2020 2021 2020 Gross margin (GM) table Opex development Q1 Q1 Q1 Q1 Net Sales 214.0 221.7 Sales & marketing cost 44.6 54.7 Cost of services1/ -47.2 -56.0 R&D 30.3 34.4 D&A -23.5 -16.6 G&A 26.1 23.2 Currency effect and others 2.4 3.7 Opex total 101.1 112.3 Gross profit 145.7 152.8

  12. Slide 12: Solid Financial Position

    Solid Financial Position Stable cash flow • Q1 cash flow before changes in WC amounted to SEK 79.9 m (43.9) generation • Q1 cash flow from operations amounted to SEK 68.8 m (62.2) Effective • Interest bearing bank loans amounted to SEK 438.1 m (total facility of SEK 530 m) financing structure • Cash

  13. Slide 13: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 13

  14. Slide 14: Enea Panel: Key Trends that Shape 5G Mobile Data

    Enea Panel: Key Trends that Shape 5G Mobile Data  In 2021, top use cases for 5G include cloud gaming, group video calling, and private 5G  There will be a 5x increase in mobile cloud gaming traffic  Encrypted traffic will represent 93% of Internet traffic by the end of 2021  Operators will inves

  15. Slide 15: Outlook 2021 and Longer Term

    Outlook 2021 and Longer Term 2021 Longer Term • Pandemic causes delays in • Growing markets for 5G data management, Market projects edge virtualization, IoT and cybersecurity Dynamics • Risks in earnings over the • We challenge established players and increase next several quarters our market share

  16. Slide 16: Thank you!

    Thank you! www.enea.com

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